SEIS Scheme and Its Eligibility, Benefits and Procedure

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Introduction to SEIS Scheme:

The Government of India has introduced the SEIS scheme in the year 2015, under the Foreign Trade Policy of India 2015-2020. Earlier the scheme was known as Served from India Scheme (SFIS). The reason behind this scheme is to promote the exports of services from India and the service providers of India are eligible to claim the benefits.

Under the SEIS scheme, the Government of India provides incentives to service providers and the incentives are given in the form of rewards like duty-free credit scrips. Those incentives provided by the DGFT must be in the range of 5% – 7%.

SEIS Scheme and Its Eligibility, Benefits and Procedure

What Are Duty-Free Credit Scrips?

Duty-Free Credit Scrips are incentives, are given to the eligible service providers who are residing in India. The incentive rate depends on foreign trade activities. These incentive rates are most probably 3, 5 or 7%.

The service provider can use these duty scrips for paying off service taxes, customs duties, etc. These Duty Scrips can be transferable and can be sold from one assessee to the other. The validity period of the Duty Scrips is 18 months from the date issued.

What is Appendix 3D and CPC?

Appendix 3D form gives a clear description or list of communication services that are beneficial under the SEIS scheme. Once the service provider goes through the Appendix 3D form, they will get a clear idea about the services. Out of those services which service is beneficial for their trades under the SEIS scheme. To understand in more detailed, Service Provider has to go through the SEIS Scheme and its benefits.

In the appendix 3D form, CPC (central product classification code) column has given. As mentioned in Appendix 3D form, each service is having its own CPC code. From the list, service providers can understand, under which sector their service will come and how much percent of incentives will be credited to that particular service.

Educational Service Under SEIS Scheme:

Many services come under the SEIS scheme benefits, one such service which is eligible is “Educational services”. Educational service is one of the long-lasting services and it will be beneficial for the school and college students.

Educational Services can be further classified into the sub-service categories like Primary education services, Secondary education services, Higher education services, Adult education. For Educational Services the Government of India has provided CPC (Central Product Classification Code) between 5%-7%. One can get a detailed explanation about the services from Appendix 3D form.

Eligibility for SEIS Scheme:

In the SEIS Scheme, there is a total of 4 modes included and all services can not avail the benefits of the SEIS scheme. Out of 4 modes only 2 modes can claim for the incentives of SEIS scheme. And those modes are mode 1 and mode 2.

Mode 1 is consisting services supply from India to any other (Country cross border trade of services) and mode 2 are consisting of services supply from India to service consumers of any other country (Consumption of services abroad).

Procedure to Apply for SEIS Scheme:

To avail the benefits service provider needs to follow Procedure:

  • The service provider has to visit the DGFT website.
  • In the services tab option select “Online ECOM Application”.
  • Under “Online ECOM Application” select the year you want to file your SEIS for.
  • Then you have to fill-up all the details and submit the form.
  • Aayat Niryat Form (ANF) 3B has become more effective from June 2018.

To Avail the Benefit:

To avail the benefits Exporter needs to be ready with the following Documents:

  • IEC Copy
  • Self-Certified copy of applicant form ANF 3B
  • CA Certificate
  • Valid DGFT DSC

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